A thing that has been on my mind recently is a Timeshare. I keep doing the calculations to see if it’s actually a good deal or a total scam. The cost that you have to pay upfront in most cases is rather ridicules. Some of my friends have paid over 20,000 dollars to purchase a time share. However the upfront cost I can justify overtime, the maintenance cost is a total scam. In some cases you are paying over 1,000 dollars per year just in maintenance; a good all inclusive vacation costs just over 1,000 dollars per person. Another drawback is your ability to sell the stupid timeshare after you no longer want it. I have looked at the prices for time shares from private parties vs. resorts them selves, and the price difference is rather staggering. The same timeshare that a resort is selling for 10k a private party will give to you virtually for free, as long as you pick up the maintenance obligation.
So is it a scam or a good investment?
Here are some stories I found on the subject:
http://www.bankrate.com/brm/news/pf/Oct06_time_share_horror_storiesa1.asp
March 4th, 2008 at 12:52 pm
As an owner of a timeshare, I may be a bit biased. Different timeshares have different rules. So, keep that in mind. ALSO… maintenance fees vary greatly as well. You can also “exchange” your time share to go some place else within your network (i.e. RCI). Some places you only pay the maintenance fee for the year that you have the time share. Also, I accrue “points” every year on one time share (in Maui), but to stay there I need a certain amount of points, however to “exchange” for a lesser destination, I may need less.
Basically, what it comes down to is the fine print, and if you are willing to pay what they are offering. Also, there are certain privileges that come with some places (free 3-hour happy hour every day) – and don’t forget to HAGGLE!
March 4th, 2008 at 2:27 pm
So you don’t feel like you got ripped off?